The Pound is alarmed
02.07.2015
The GBP/USD pair is declining for the third consecutive day. Greece is closer to the UK than previously thought.
On Thursday, the British Pound is losing weight in tandem with the US dollar. This is the third consecutive session in the "red" for the pound. Greece and its problems do not directly relate to London, as the UK is not part of the eurozone. But it is included in the EU, so the financial collapse of its neighbours still matters.
Yesterday comments were made by the Bank of England, according to which the prospects for the UK economy had deteriorated in recent years. Against this backdrop, the pound/dollar went down to a local minimum below 1.56.
Now the boundary of 1.56 looks very thin and mobile. It will be broken as soon as investors deem it possible and necessary. The next strong support is at around 1.5575, then 1.5545.
This morning, data was released by Nationwide index of housing prices in the UK in June. According to statistics, the index rose by 3.3% y/y with the forecast of growth of 4.3% y/y. Monthly the indicator decreased by 0.2% with growth forecast of 0.5%.
RoboForex Analytical Department
On Thursday, the British Pound is losing weight in tandem with the US dollar. This is the third consecutive session in the "red" for the pound. Greece and its problems do not directly relate to London, as the UK is not part of the eurozone. But it is included in the EU, so the financial collapse of its neighbours still matters.
Yesterday comments were made by the Bank of England, according to which the prospects for the UK economy had deteriorated in recent years. Against this backdrop, the pound/dollar went down to a local minimum below 1.56.
Now the boundary of 1.56 looks very thin and mobile. It will be broken as soon as investors deem it possible and necessary. The next strong support is at around 1.5575, then 1.5545.
This morning, data was released by Nationwide index of housing prices in the UK in June. According to statistics, the index rose by 3.3% y/y with the forecast of growth of 4.3% y/y. Monthly the indicator decreased by 0.2% with growth forecast of 0.5%.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.